On June 20, 2025, Texas Governor Greg Abbott signed a bill to establish a Bitcoin reserve managed by the state. This move underscores Texas's commitment to integrating cryptocurrencies into public finance.
Creation of Bitcoin Reserve
Senate Bill 21, known as the Texas Strategic Bitcoin Reserve Act, allows the state to create a Bitcoin reserve outside of its general treasury. The reserve will be managed by the state comptroller and guided by a five-member crypto advisory committee. To qualify for inclusion, a digital asset must maintain an average market capitalization of at least $500 billion over a 24-month period, a criterion that currently only Bitcoin meets.
Legal Protections via HB 4488
House Bill 4488, signed by Governor Abbott, ensures that funds within the Bitcoin reserve cannot be transferred to the state’s general revenue or liquidated without direct legislative action. This law provides an essential safeguard, preserving the reserve’s independence.
Importance for Texas
Texas joins a small but growing group of U.S. states treating Bitcoin as a strategic financial asset. This move may enhance the state's reputation as a crypto-friendly region, potentially attracting new investments. However, practical implementation details, such as when and how the state will purchase Bitcoin, remain unclear.
The establishment of the Bitcoin reserve in Texas demonstrates the state's serious approach to cryptocurrencies and may provide a foundation for further integration of digital assets into governmental operations.
